GEORGETOWN, Guyana, (DPI) – As Guyana’s economy continues to show positive growth and lead as one of the fastest growing economies in the world, Senior Minister in the Office of the president with responsibility for finance Dr Ashni Singh presented the country’s 2022 Mid-Year Report published by the ministry of finance.
The report shows Guyana recording an overall real Gross Domestic Product (GDP) growth of 36.4 percent in the first half of the year, while the non-oil economy grew by 8.3 percent, reflecting the government’s supportive policy stance.
The outlook for the second half continues to be favourable and for the full year, real GDP growth in 2022 is projected at 56 percent overall, and non-oil GDP growth at 9.6 percent, maintaining Guyana’s position of global leader in economic growth.
However, on a positive note, the International Monetary Fund (IMF) in its recent report in September indicated that the overall real GDP growth rate is projected to be 57.8 percent in 2022.
Senior finance minister Dr Ashni Singh had noted that upon the assumption to office by the president Irfaan Ali-led government, the administration recognised the importance of a strong, diversified economic base and, as such, even in the early days of oil production, placed the highest level of importance on a resilient non-oil economy. The aim, therefore, was to modernise the economy’s traditional pillars and catalyze a rapidly growing and highly competitive non-oil economy. This is evident in the nation’s non-oil economic growth at the end of the first half. The continued growth projected for 2022 builds on the 4.6 percent growth recorded last year.
In its September 2022 Article IV Report, the IMF noted that following the pandemic-induced recession in 2020, and protracted political transition, non-oil economic growth recovered in 2021, despite being negatively impacted by floods.
As such, the IMF ‘welcomed the broad-based economic recovery in 2021, following a protracted political transition and the pandemic-induced recession in 2020, and the unprecedented high real GDP growth, supported by a steep rise in oil production and accommodative policies.
In the IMF report, a significant decline in public debt and favourable debt dynamics were noted. “Staff welcomed the recent amendments to the NRF Act. The recent Amendments to the NRF Act set clear ceilings on withdrawals from the Fund for Budgetary spending and promote transparency in the management and use of oil resources. Staff praised the Authorities’ thorough review of the NRF Act before making amendments and the restraint in using any oil revenues before the passage of the Amendments”, the IMF report stated.
The IMF further encouraged the government to continue improving the targeting of social spending while it ‘commended the authorities’ efforts to ‘maintain financial stability and promote financial Inclusion as well its ‘progress in strengthening Guyana’s anti-corruption framework and fiscal transparency’ and for its ‘efforts to build resilience to climate change as put forward in its Low Carbon Development Strategy.
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